Although 70% is a high number, it makes sense when you take into account that there is a 40% chance of a correction In any year and the current enviorment. As he mentioned stocks are highly value and interest rates are low.

In this case it is probably more due to looking at prices from different times rather than a currency effect. Stock prices (including US-listed foreign stock ETFs) went down in the US late in the trading day yesterday, after foreign markets had closed. The losses seen in foreign markets today are l...

One (certainly oversimplified and therefore wrong, but perhaps still useful) way to compare would be to ask how much money you'd need to have right now to purchase each house outright, and have enough left over to pay the property taxes ~forever. Applying a 4% withdrawal rule for each $10k of annua...

Be aware the calculator is programmed to take into account the mortgage-interest tax deduction but has not been updated for the recent change to the tax code. I don't know if this would make a practical difference in the result, could be it would even out and tax result would be the same impact eit...

Put both scenarios through the NYT rent vs buy calculator, note down the total cost to own for each, say over 10 years. I recommend doing this on a computer screen (I can't see that output on mobile) I used the calculator and after 30 years it appears that a 400K in with house (~2% property tax) wa...

Hi all, I am trying to figure out the break even point of comparing houses which vastly different property taxes. For example, say I can buy the same houses in one market for 600K and another market for 500k, each with a 120k down payment. However, my monthly mortgage is the same for both due to hig...

Hi all, How can the US stock returns be good in the near future(10 years or so) due to their high valuation and the risk that the next or next administration raises the corporate tax ? Here's my take: 1) U.S. stock returns won't be good in the near future if there's not a crash big enough to scare ...

Hi all, How can the US stock returns be good in the near future(10 years or so) due to their high valuation and the risk that the next or next administration raises the corporate tax ? How was it possible for the market to have come roaring back from 2009 to now, with the sky-high corporate tax rat...

It is pretty easy to see what is going to happen when one steps back and looks at the BIG PICTURE: $1,500,000,000,000 are being borrowed out of thin air and will end up increasing stock prices. It is really as simple as that. We have seen something almost as simple before, but the names and amounts...

This is based on a fundamental misunderstanding of how brackets work. Each bracket applies only to income in that bracket. If you are at the top of the 15% bracket, and then your taxable income rises by $1000, you pay 25% tax only on that $1000, so you get to keep $750 more. There are a few absolut...

Hi all, People they do X to avoid going into a higher tax bracket. It makes sense if you expect to be in a lower tax bracket in the future. For example, someone mentioned to me that it may be financially beneficial to take a more costly health care plan to keep the person out of a higher bracket. Is...

Someone told me rule of thumb At extremes (rare use vs maxing rxpense), hdhp is favorable. In the middle, calculation may be helpful That makes sense. I don't have any cronic conditions so its a risk/reward. I have concluded, hopefully right,the range is relatively narrow. The worst case, I think, ...

I am trying to figure out what is about the break point financially between 2 health care plans for myself only. Might be worth putting your numbers into a couple of comparison tools, e.g., Health Savings Account (HSA) vs. Traditional Health Plan and the 'HDHP Analysis' tab of the personal finance ...

Hi all , I am trying to figure out what is about the break point financially between 2 health care plans for myself only. Both have 2k deductible HDHP: 1,400 a year cheaper(include tax break) 50% coinsurance + I can max max out HSA ($3,450) office vists I have to pay all PPO: 30% coinsurance and of...

Hi all , I am trying to figure out what is about the break point financially between 2 health care plans for myself only. Both have 2k deductible HDHP: 1,400 a year cheaper(include tax break) 50% coinsurance + I can max max out HSA ($3,450) office vists I have to pay all PPO: 30% coinsurance and of...

Assuming you are in the 25% tax bracket and you already max your 401k, the HSA tax break gives you an ~$900 including state taxes (if not in CA) and FICA. The HDHP has a $2300 head start. How do the Out of Pocket Max compare for the two plans? The Out of Pocket Max is $100 more for the HDHP. About ...

The Out of Pocket Max is $100 more for the HDHP. About how much is the added value in that the HSA can grow tax free? I would go with the HDHP. Lots of upside with the only downside being $100 at the most. Possible benefit of tax free growth depends on time in the market and what you invest in. Suf...

Assuming you are in the 25% tax bracket and you already max your 401k, the HSA tax break gives you an ~$900 including state taxes (if not in CA) and FICA. The HDHP has a $2300 head start. How do the Out of Pocket Max compare for the two plans? The Out of Pocket Max is $100 more for the HDHP. About ...

If you're someone who goes to the doctor everytime you have the sniffles or you have a chronic condition that requires maintenance it might make sense to go with a PPO but I think most healthy people would be better off with a HDHP. In my case I went with a HDHP because the only situation I found i...

Depends on how your health is, how many visits do you typically have in a year, do plans cover both specialists and general practitioners at same rate? It’s too little information to tell break even point. Visit: once a year for a checkup I currently don't have any prescriptions. specialists and ge...

Hi all , I am trying to figure out what is about the break point financially between 2 health care plans for myself only. Both have 2k deductible HDHP: 1,400 a year cheaper(include tax break) 50% coinsurance + I can max max out HSA ($3,450) office vists I have to pay all PPO: 30% coinsurance and off...

I can tell you why I don't and choose to go HSA Bank instead. $0 fees. That's right, not $15 for one trade. $0. I hold $5k in my HSA Bank acct which culminates in waived account management fees. Then I set up the corresponding TD Ameritrade account and have 100+ ETFs to invest in with no trading co...

As I've posted in the big Lively thread, I've been very happy so far in my 6 weeks their. Their online application is easy as pie, and their customer service is very responsive. And while I would have preferred Vanguard ETFs, I am fine with the SPDR Core Portfolio ETFs. In my case, I'm using SPEM (...

Hi all, I am going to open up an HSA account for the 1st time this year and I have been researching various custodians. I plan on using the HSA as another retirement account and likely will not be taking out money for many years. Age: 33 Single and planning to get married but I will be the only one ...

You guess. That's actually the best answer, because no one knows which segment of the market is going to perform better over the next 5, 10, or 20 years. It's expected that, because small stocks tend to be more volatile than large stocks, they will, over the long haul, out-perform large stocks. Not...

large/mid/small cap labels are arbitrary and used differently by different index and fund providers - so I don't see any reason to target set percentages of them for their own sake. What are you looking to accomplish in your portfolio strategy? Once you know that you don't need recommended targets ...

large/mid/small cap labels are arbitrary and used differently by different index and fund providers - so I don't see any reason to target set percentages of them for their own sake. What are you looking to accomplish in your portfolio strategy? Once you know that you don't need recommended targets ...

Hi all, I have read many past posts that describe sample portfolios. For example, the Coffee House portfolio calls for the equity portion to be 25% large cap 25% large value 25% small cap 25% small value Large cap and small cap funds have mid caps mixed in but how I do I tell how much of each large,...

There is only so much you need to know to follow the Boglehead philosophy and only so many financial questions that can be asked. Things don't change much as compared to other topics. For example , if you trade stocks often, there is always new information and new stocks to research. other popular d...

Mutual funds are priced at "net asset value"; this means that the price is determined by the current value of the assets. If you withdraw $884 from the mutual fund (which is the correct value of this bond if its yield is 2.5%), then the mutual fund must sell assets for $884 to pay you. With the fun...

I honestly don't get the concept of "fun" money. Disclosure: I'll buy lottery tickets, because winning $300M would be life changing; I know the odds, but I can't fantasize if I don't own at least one ticket, which is cheaper than a movie ticket. Doubling $500, or even going 10x on $500 doesn't remi...

Mutual funds are priced at "net asset value"; this means that the price is determined by the current value of the assets. If you withdraw $884 from the mutual fund (which is the correct value of this bond if its yield is 2.5%), then the mutual fund must sell assets for $884 to pay you. With the fun...

For the simplest example, consider a zero-coupon bond. If a five-year zero-coupon bond will pay you $1000 at maturity, and the bond is currently worth $906, then the bond yield is 2%, because $906 invested for five years at 2% interest would become $1000. If the bond price drops to $863, then the b...

Why do bonds funds go down when interest rates rise? Why isn't the expected interest rate already priced into the fund? When the price of a bond falls, the yield on that bond rises; this is determined by a mathematical formula. If a bond with a 5-year duration and a 2% yield is worth $1000, then wh...

"Open end" Fund-price should mostly/only reflect the market value of the underlying assets? "Closed end" Fund-price can trend well above or well below the market value of the underlying assets? If lots of sales of mutual fund shares drive down the prices of the underlying assets(funds having to sel...

Hi all, Why do bonds funds go down when interest rates rise? Why isn't the expected interest rate already priced into the fund? For example, Amazon has growth priced into its stock. "Expectations" are not directly priced into a mutual fund. The price (NAV) of a mutual fund is the composite prices o...